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Is Ichor Holdings, Ltd. (ICHR) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Ichor Holdings, Ltd. (ICHR - Free Report) is a stock many investors are watching right now. ICHR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.55 right now. For comparison, its industry sports an average P/E of 14.32. Over the last 12 months, ICHR's Forward P/E has been as high as 27.38 and as low as 5.11, with a median of 12.53.

Finally, our model also underscores that ICHR has a P/CF ratio of 13.83. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ICHR's P/CF compares to its industry's average P/CF of 26.18. Over the past year, ICHR's P/CF has been as high as 27.28 and as low as 10.05, with a median of 16.37.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Ichor Holdings, Ltd. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ICHR feels like a great value stock at the moment.


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